This, unfortunately, also implies an explosion of interest rate risk. Given a fixed monthly payment, I'd much rather be paying it at high rates that have a good chance of dropping, than at low rates that have a good chance at rising.

Edit: Thank you, Americans, for your perspective! I understand now that you have fixed rate mortgages there. That's, for better or worse, not the case in Canada!

Most homeowners have 30 year fixed rate mortgages. There is no interest rate risk. If rates drop they can even refinance.

Most Americans I know, including us, have fixed rate mortgages. So there's no risk of rates rising on you.

It would take a very strange thesis indeed to persuade someone to pay a variable rate these days. I doubt that it happens

Ah, my perspective is coming from Canada where every mortgage is variable rate. ("Fixed rate" mortgages are only locked in for five years).

One would think that would cause US real estate to appreciate much faster than Canada when rates are low, but the opposite is the case. Strange days indeed.

* In Canada you technically can get a 25 year fixed mortgage, but the interest rate is 8.75%. That's a massive premium and I've never heard of anyone doing that.

https://www.ratehub.ca/best-mortgage-rates/25-year/fixed

If you want your monthly payments to be low initially, and you intend to pay off the mortgage debt fully within 5 or 7 years, then a 5/1 or 7/1 ARM can be a good option.